The QuestNet Scam: QuestNet Turkey

Media reports in Turkey in recent times have alluded to QuestNet’s operations as a scam and have reported the detention of some of its independent representatives. QuestNet would like to take the opportunity to make its stand clear on its Turkey operations through a series of FAQs.

QuestNet Turkey




1. Describe how QuestNet operates in Turkey?

As with all our markets, our business in Turkey functions on an online model. Customers make purchases and payments online and we in turn, ship the products directly to them.

QuestNet is in the process of setting up our local operations. The structure will be very much domestic and locally based, with local representatives within the country, including local premises, shipping, payment model and other such structures consistent with local business operations.
 

2. How long has QuestNet been doing business in Turkey?
Customers in Turkey have been purchasing our products online for about 2 years now, but it is in recent months that it has come to our attention that our customer base has incrementally increased leading to our establishing our presence domestically to cater to the needs of our customers in Turkey.
 

3. For the last few months there have been various negative articles about the  company in the media. Why do you think such anti campaigns have been running?
We are a successful global business that is not very well understood in Turkey. There is a sometimes a lack of general awareness about the Direct Selling and Network Marketing industry, and in other instances, the manner in which certain distributors conduct their business lead to issues.

The negative articles and anti-QuestNet campaigns could come from any source; disgruntled individuals, competition, or even social groups and organizations that do not understand our business. It is difficult to pin-point the source, but it is alarming and we are making all attempts to clear the misinformation regarding our company. Certainly where there are consumer complaints, we will be pleased to hear from the consumers and deal with their queries directly. We will take all steps to address and redress the issues.
 

4. QuestNet has been associated with the illegal happiness chain ‘Titan’ that was banned in Turkey some time back. Is your company like ‘Titan’? What is the difference?
The fundamental difference lies in the fact that while ‘Titan’ was a scam, we are not. We are a legal organization with global operations, genuine high-quality products and services, a cutting edge e-commerce platform and nearly 1000 employees spread in 20 locations worldwide catering to the needs of our customers. We have invested significantly in setting up local operations and infrastructure in different countries and provide 24x7 customer support in 13 different languages through our contact centre. We are also heavily involved in charitable activities in different parts of the world. Most importantly we have been around for into 13 years to date.
 

5. The ministry of industry and ministry of finance has started investigation into your company? What is the latest status? Did you get in touch with them?
To date, we have received no official intimation from any ministry or government body about any sort of investigation, whatsoever, about QuestNet or its business activities. We strive to adhere to local laws and regulations, and will be glad to cooperate with any ministry or government body, if requested to do so. We will also be pleased to open dialogue with the relavant ministries at any time. We seek to be absolutely transparent, since that is the best way in which to conduct business, and we would welcome such dialogue with the relevant ministries to clarify the issues.
 

6. QuestNet seems to be in the news in Turkey once again after the initial media interest in April 2010. What has brought on this renewed interest in your Turkish operations, as being reported in the media?
As explained earlier, the initial media interest seemed to be arising primarily due to a lack of awareness and misunderstanding about our business model and certain practices which may have transpired in Turkey.

We have since then taken several steps towards creating more awareness about the QuestNet business model, products and services, and our operational procedures. We have conducted training programs for our customers to educate them on conducting their business in a professional and ethical manner.  We are working with lawyers for regulatory and compliance purposes and have hired a PR agency to advise us on the best way to engage with the media to seek their help in educating the public and address the concerns previously brought up in news reports about our business model being a pyramid. We have also taken stern action, and will continue to do so, against all errant distributors. In this way, we wish to assure the public, we will not condone any poor business practices in our business.

Despite the recent negative coverage, I would say, we have achieved reasonable success in that area.
 

7.  It has been reported that some of your Independent Representatives (IRs) have been arrested on charges of fraud and cheating. What do you have to say to that?
It is true that some IRs have been detained and investigations are ongoing. As the matter is sub judice, it would be inappropriate for us to comment at this juncture. We can say that we are following the developments very closely and are able and ready to cooperate with the relevant authorities, if called upon to do so.

Meanwhile, we have also received complaints from within our network about certain IRs who have been conducting the business in an unethical manner and are misrepresenting the business to other individuals. Our Network Compliance Department is investigating these complaints, and appropriate action, including termination of IRs, has already been taken in a number of cases. We are seeking to ensure that such matters do not occur or continue, as also discussed above.
 

8. How far have you progressed in setting up your local operations and does the current situation change your position in any way?
Many factors come into play when considering the set-up of local operations. Some of these are, but not limited to, customer base, market size, growth rate, future potential, and local regulations.

We have registered a local company, leased an office space, opened our bank accounts and hired employees for operational support.  We have adapted our global policies and procedures to local requirements and are in the process of translating it into the Turkish language. Setting up a fully functional office to support our network will take us some time and we are trying to expedite this in order to be fully compliant at the earliest. As you will appreciate, this can be a time-consuming process made even more difficult in the light of the recent negative media reports.

The current situation does not in any way change our position or interest in Turkey. Turkey remains an important market for us and we are fully committed to resolving the current issues and by establishing a firm presence there.
 

9. How do you control your sales representatives activities? Are they all independent?
The company would like to reiterate that the IRs are not employees of the company and cannot be called ‘sales representatives’. They are independent representatives, running their own business using QuestNet’s e-commerce platform.

When a customer decides to become an IR, he must sign a comprehensive Policies & Procedures document that provides the guidelines for conducting the business in an ethical manner. The company provides a wide variety of marketing collaterals such as magazines, newsletters, brochures, product profiles and videos to help the IR promote our products. Additionally, we conduct regular training programmes in different countries on our compensation plan, business model, products and especially on the importance of ethical and professional marketing.

There are also ethical and professional guidelines which apply and which all IR’s are subjected to without exception for adherence. In this way, their behaviour can be regulated and if there are disciplinary or other issues which arise, they are dealt with strict punishment which can range from having to show cause to the complaints or charges leveled, leading to suspension and/or termination.

We also have a well established a Network Compliance Department (NCD) that is assigned to to monitor network behavior and ensure that IRs are conducting the business in a professional and ethical manner. The NCD thoroughly investigates all complaints or claims against our IRs, and appropriate action is taken based on the findings of such investigations.
 

10. In the event the authorities find any of these IRs guilty on any count, how does it affect your relationship with them (IRs)? As an organisation, how responsible are you for the action of your networkers?
As mentioned, our Network Compliance Department which monitors and acts upon any complaints brought to our attention pertaining to our networkers is conducting its own internal investigations.

All our networkers are bound by Policies and Procedures and a stringent Code of Conduct, which they must adhere to. We take a serious view of any lapses and appropriate action, including termination of an IRs will be done, if deemed necessary.

Till date, in Turkey, we have already suspended and terminated over 49 IRs based on our own independent investigations.

Any action we take against the IRs currently in custody, will to a very large extent also depend on the findings of the authorities. Hence, we are hoping for a speedy decision in these cases.

As a global leader in the direct sales industry, we are committed to upholding the values and integrity of this industry and have always acted likewise.
 

11. Does this negative publicity affect your business plans related to Turkey?
Indeed it does. Any business depicted in a negative campaign is bound to be affected. This affects not only our business operations, but also that of our IRs, and sometimes it perpetuates misinformation, which also leads to an incorrect picture in the minds of our customers, the general public and authorities.
 

12. Who is responsible to sort out the customers’ problems that have problem with your system? QuestNet or your sales representatives?
If any customer has a product/service related grievance, QuestNet is responsible to address the same. We have a 24/7 multilingual customer contact centre that deals with any customer grievances through e-mail and phone. Details of our customer support, known as the Network Support Group (NSG) are available on our website.
 

13. What is your goal for Turkish market?
Turkey is a fast growing and important market, with its emerging position, attempts and proximity within the EU.  Our goal is to be able to contribute positively to the industry overall, professionally and to enhance the ambitions, development and growth both domestically and economically in Turkey. This will in turn assist growth on a per capita basis within the country also.
 

14. Do you have Turkish speaking employers at your call service to help your customers from Turkey?
Yes, we do. We will be pleased to provide any and all information here to any party.
 




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